Mar 31, 2015
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR) Contingent Liabilities
(a) Guarantees given on behalf of Subsidiary Company, HB Securities
Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)
Commitments
(b) Rs. 1,25,00,000/- (Previous Year Rs. 1,25,00,000) on account of
uncalled call money in respect of Partly Paid up Shares.
2. SEGMENT REPORTING
In the opinion of Management there are no separate reportable segments
as per Accounting Standard Segment reporting (AS-17).
3. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES
Operating Lease
a) Particulars of the minimum lease payments under Operating Lease:-
Not Later than One year Rs. 9,67,692/- (Previous Year
Rs. 9,67,692/-)
Later than one year but not Rs. NIL (Previous Year Rs. NIL)
Later than five years
Later than five years Rs. NIL (Previous Year Rs. NIL)
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March 2015 is Rs. 9,67,692/-
(Previous Year Rs. 9,67,692/-).
c) General description of the lease arrangement.
* The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing of
the lessor.
* The Lessee shall use the premises for commercial purposes only.
4. DUE TO MICRO, SMALL AND MEDIUM ENTERPRISES
To the extent information available with the Company, it has no dues to
the Micro, Small and Medium enterprises as at 31st March, 2015 and 31st
March, 2014.
5. The Company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934. The application of the Company was,
however, returned by RBI vide its letter dated December 24, 2004 with
an advice to resubmit the application on the completion of SEBI's
enquiry against the group companies. In an Appeal filed by the Company
before the Appellate Authority (in the Ministry of Finance) against the
aforesaid decision of RBI, the Appellate Authority vide its Order dated
September 25, 2006, directed the Company to resubmit the application
along with the latest balance sheets and other relevant details within
30 days to RBI and RBI to thereafter decide the case by obtaining
necessary response from SEBI within 3 months from the date of receipt
of the Order. The Company resubmitted its application to RBI's Regional
Office at New Delhi on 23rd October, 2006 as per the aforesaid
directions of the Appellate Authority. Additional details / documents /
clarifications as required by RBI from time to time were submitted.
The Company vide its letters dated 11th October, 2010 and 29th January,
2011 intimated the RBI about the disposal of pending proceeding by the
SEBI and also furnished copy of SEBI orders. The RBI vide its letter
dated 29th March, 2011 advised the Company to make a fresh application
for issue of Certificate of Registration. As directed by RBI, the
Company filed a fresh application on 20th June, 2011.The necessary
queries / information raised / sought by RBI from time to time were
filed.
Thereafter, the Company was advised by the Reserve Bank of India vide
its letter dated 30th January, 2013 to file fresh application for
registration as NBFC and accordingly the Company submitted the fresh
application along with required documents / information on 29th July,
2013. The Reserve Bank of India again returned the application for
submission of additional documents / information vide its letter dated
16th August, 2013 and accordingly the Company submitted the fresh
application along with required documents / information on 19th March,
2014. The information / clarifications sought thereafter by RBI have
also been submitted by the Company.
6. In view of the above facts, the provisions of Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directors, 2007) as Superseded by "Non-Systemically Important
Non-Banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 201 5 are yet to be
applicable to the Company. However, as a matter of prudent and proper
practice, disclosure of details as required by Para 13 of aforesaid
directions is being given. Similarly the transfer of profit to Reserve
Fund as required by Reserve Bank of India (Amendment) Act, 1997 is also
being made.
7. During the year, the Company has revised depreciation rates on
fixed assets as per the useful life specified in Schedule II to the
Companies Act, 2013. Based on the Current estimates, depreciation of
Rs. 52,706/- on account of assets whose useful life has already
exhaushed as on April 1, 2014 has been added to the depreciation for
the year ended March 31,2015.
Due to aforesaid revision in depreciation rates, depreciation for the
year as charged in the Profit & Loss account is higher by Rs. 85,719/-.
8. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
9. The Company does not have any pending litigation which would impact
its financial position.
10. The Previous year figures have been
regrouped/reclassified,wherever necessary to conform to the Current
Year's presentation.
Mar 31, 2014
1. SHARE CAPITAL
- Issued Share capital of the Company has only one class of shares
referred to as equity shares having Par value of Rs. 10/. Each holder
of Equity Shares is entitled to One vote per share.
- Reconcilation of the number of shares outstanding and Amount of Share
Capital as on 31st March, 2014 & 31st March, 2013 is as under:
- Particulars of Shares in the company held by each shareholder holding
more than 5% shares:
- In the event of the Liquidation of the company, the holder of equity
shares will be entitled to receive any of the remaining assets of the
company, after distribution of all Preferential amounts.The
distribution will be in proportion to the number of equity shares held
by the shareholders.
2. RESERVES AND SURPLUS
(*) Created by way of transfer of specified percentage of profits as
per section 45IC of Reserve Bank of India (Amendment) Act,1997.
Appropriation from Reserves shall be for the purposes as may be
specified by Reserve Bank of India.
* The Loan taken is at Interest rate of 9.5%
- Maturity Profile of Secured Term Loan from banks are as under:
3.INVESTMENTS
1. Aggregate Amount of Quoted Investments 150010674 25903528/
2. Market Value of Quoted Investments 209864961 454393197
3. Aggregate Amount of Unquoted Investments 668819586 535270275
4. Investment Costing Rs. 13,67,54,711/- (Previous Year Rs.
7,82,66,119/-) were lying Pledged/given as Margin as at the year end
5. In the opinion of the management no provision is required for
Diminution amounting to Rs. 1,02,88,370/- (Previous Year Rs.
98,54,719/-) in the value of some of the Long term/Non curren
investment, as the same is considered to be temporary.
6. Market Value of Shares listed but not Quoted have been taken at
cost.
4. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR) Contingent Liabilities
(a) Guarantees given on behalf of Subsidiary Company HB Securities
Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)
Commitments
(a) Rs. 1,25,00,000/- (Previous Year Rs. 1,25,00,000) on account of
uncalled call money in respect of Partly Paid up Shares.
5. RELATED PARTY TRANSACTIONS
A. List of related parties with whom transactions have taken place and
relationship:
a) Subsidiaries.
1. HB Securities Limited
2. HB Corporate Services Limited
b) Key Managerial Personnel
1. Shri Anil Goyal, Managing Director
c) Person having control/significant influence /major shareholders
1. Shri Lalit Bhasin
d) Enterprises over which control/significant influence exist of the
relatives of persons mentioned in (c) above :-
1. RRB Master Securities Delhi Ltd.
e) Companies under direct or indirect common control/significant
influence:
1. HB Stockholdings Ltd.
2. HB Estate Developers Ltd.
3. RRB Masterholdings Ltd.
4. RRB Securities Ltd.
f) Associates
1. Merwanjee Securities Ltd.
2. Taurus Asset Management Co.Ltd
3. Pisces Portfolios Private Limited
B. Figures in brackets related to previous year.
c. Disclosure in respect of outstanding closing balance of related
party transactions.
i) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs.
3,45,00,000/-) to HB Estate Developers Ltd.
ii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year
Rs. 9,00,00,000/-) to HB Estate Developers Ltd, Margin Money of Rs. Nil
(Previous Year Rs. 1,82,50,000) to RRB Master Securities (Delhi) Ltd.
and advances against Share Application Money of Rs. 3,72,50,000/-
(Previous year Rs. 4,06,50,000/- ) to HB Securities Ltd.; Rs.
2,00,00,000/- (Previous year Rs. 2,00,00,000/-) to HB Corporate
Services Ltd. and Rs. 1,00,00,000/- (Previous year 1,00,00,000/-) to
Merwanjee Securities Ltd.
iii) Expenses recoverable includes Rs. 86,386/- (Previous year Rs.
76,268/) from HB Corporate Services Ltd.
iv) Interest receivable includes Rs. 48,46,685/- (Previous year Rs.
48,46,685/--) from HB Estate Developers Ltd.
v) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/-
(Previous year Rs. 15,00,00,000/- ) vi) Trade Receivables includes Rs.
98,49,004/- (Previous Year Rs. 3,61,13,388/-) due from RRB Master
securities (Delhi) Ltd.
6. SEGMENT REPORTING
In the opinion of Management there are no separate reportable segments
as per Accounting Standard Segment reporting (AS-17).
7. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD-15
8. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES: -
Operating Lease
a) Particulars of the minimum lease payments under Operating Lease:-
Later than One year Rs. 9,67,692/- (Previous Year Rs. 9,67,692/-)
Later than one year Rs. NIL (Previous Year Rs. NIL)
but not
Later than five years
Later than five years Rs. NIL (Previous Year Rs. NIL)
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March 2014 is Rs. 9,67,692/-
(Previous Year Rs. 9,67,692/-).
c) General description of the lease arrangement.
- The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing of
the lessor.
- The lessee shall use the premises for commercial purposes only.
9. Due to Micro, Small and Medium Enterprises
To the extent information available with the company, it has no dues to
the Micro, Small and medium enterprises as at 31st March, 2014 and 31st
March, 2013.
ii) Year to which dividend relates 2012-13 2011-12
10. The company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934. The application of the company was,
however, returned by RBI vide its letter dated December 24, 2004 with
an advice to resubmit the application on the completion of SEBI''s
enquiry against the group companies. In an Appeal filed by the company
before the Appellate Authority (in the Ministry of Finance) against the
aforesaid decision of RBI, the Appellate Authority vide its Order dated
September 25, 2006, directed the company to resubmit the application
along with the latest balance sheets and other relevant details within
30 days to RBI and RBI to thereafter decide the case by obtaining
necessary response from SEBI within 3 months from the date of receipt
of the Order. The company resubmitted its application to RBI''s Regional
Office at New Delhi on 23rd October 2006 as per the aforesaid
directions of the Appellate Authority. Additional details / documents /
clarifications as required by RBI from time to time were submitted.
The company vide its letters dated 11th October, 2010 and 29th January,
2011 intimated the RBI about the disposal of pending proceeding by the
SEBI and also furnished copy of SEBI orders. The RBI vide its letter
dated 29th March, 2011 advised the company to make a fresh application
for issue of Certificate of Registration. As directed by RBI, the
company filed a fresh application on 20th June 2011. The necessary
queries/information raised/sought by RBI from time to time were filed.
Thereafter, the company was advised by the Reserve Bank of India vide
its letter dated 30th January, 2013 to file fresh application for
registration as NBFC and accordingly the company submitted the fresh
application along with required documents/information on 29th July,
2013. The Reserve Bank of India again returned the application for
submission of additional documents/information vide its letter dated
16th August, 2013 and accordingly the company submitted the fresh
application along with required documents/information on 19th March,
2014. The information/clarifications sought thereafter by RBI have also
been submitted by the company.
1. In view of the above facts, the provisions of Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007) are yet to be applicable to the company.
However, as a matter of prudent and proper practice, disclosure of
details as required by Para 13 of aforesaid directions is being given.
Similarly the transfer of profit to Reserve Fund as required by Reserve
Bank of India (Amendment) Act, 1997 is also being made.
11. Schedule as required in terms of Paragraph 13 of Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007.
Additional Disclosure as per Para 10 of aforesaid Directions
* The company has made certain investments in equity shares of the
companies which are in the real estate sector. The same are reflected
in the Balance Sheet. However, since these investments are not Mortgage
backed securities/other securitized exposures, the same are not
mentioned here.
Mar 31, 2013
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
Contingent Liabilities
(a) Guarantees given on behalf of Subsidiary Company HB Securities
Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)
(b) Income Tax demand Rs. Nil/-(Previous year Rs. 36,23,154/-) against
which the company has preferred appeal before the appropriate
authorities.
Commitments
(a) Rs. 1,25,00,000 (Previous Year Rs. Nil) on Account of Uncalled Money in
Respect of Partly Paid up shares.
2 QUANTITATIVE DETAILS
Quantitative information in respect of Investments in securities:''
3. RELATED PARTY TRANSACTIONS
3.1 List of related parties with whom transactions have taken place
and relationship:
a) Subsidiaries.
1. HB Securities Limited
2. HB Corporate Services Limited
b) Key Managerial Personnel
1 Shri Anil Goyal, Managing Director
c) Person having control/significant influence /major shareholders 1.
Shri Lalit Bhasin
d) Enterprises over which control/significant influence exist of the
relatives of persons mentioned in(c ) above :- 1 RRB Master Securities
Delhi Ltd.
e) Companies under direct or indirect common control/significant
influence:
1. HB Stockholdings Ltd.
2. HB Estate Developers Ltd.
3. RRB Master Holdings Ltd.
4. RRB Securities Ltd.
f) Associates
1. Merwanjee Securities Ltd.
2. Taurus Asset Management Co. Ltd.
3.2 Disclosure in respect of outstanding closing balance of related
party transactions.
i) Trade payable includes Rs. Nil (Previous year 1,00,12,022/-) to RRB
Master Securities (Delhi) Ltd.
ii) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs.
3,45,00,000/- ) to HB Estate Developers Ltd.
iii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year
Rs. 9,00,00,000/-) to HB Estate Developers Ltd,Margin Money of Rs.
1,82,50,000 (Previous Year Rs. Nil) to RRB Master Securities (Delhi) Ltd.
and advances against Share Application Money of Rs. 4,06,50,000/-
(Previous year Rs. 4,95,00,000/- ) to HB Securities Ltd.; Rs. 2,00,00,000/-
(Previous year Rs. 2,00,00,000/-) to HB Corporate Services Ltd. and
Rs.1,00,00,000/- (Previous year Rs. 1,00,00,000/-) to Merwanjee Securities
Ltd.
iv) Expenses recoverable includes Rs. 76,268/- (Previous year Rs.
60,350/-/) from HB Corporate Services Ltd.
v) Interest receivable includes Rs. 48,46,685/- (Previous year Rs.
24,23,343/--) from HB Estate Developers Ltd.
vi) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/-
(Previous year Rs. 15,00,00,000/- )
vii) Trade Receivables includes Rs. 3,61,13,388/- (Previous Year Rs. Nil/-)
due from RRB Master securities (Delhi) Ltd.
4 SEGMENT REPORTING
In the opinion of Management there are no separate reportable segments
as per Accounting Standard Segment reporting (AS-17).
5 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES:-
Operating Lease
a) Particulars of the minimum lease payments under Operating Lease:-
Not Later than One year Rs. 9,67,692/- (Previous Year Rs. 9,49,944/-) Later
than one year but not Rs. NIL (Previous Year Rs. NIL)
Later than five years
Later than five years Rs. NIL (Previous Year Rs. NIL)
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March 2013 is Rs. 9,67,692/- (Previous
Year Rs. 9,49,944/-).
c) General description of the lease arrangement.
 The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing of
the lessor. The lessee shall use the premises for commercial purposes
only.
6 Due to Micro,Small and Medium Enterprises
To the extent information available with the company,it has no dues to
the Micro,Small and medium enterprises as at 31st March, 2013 and 31st
March, 2012.
7 Dividend paid to Non-Resident Shareholders:-
The Company has not remitted any dividend in foreign currency and does
not have information as to the extent to which remirrance,if any,in
foreing currency on account of dividends have been made by/on behalf of
non-resident shareholders. The Particulars of dividend Paid to
non-resident shareholders are as under:-
8 The company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934. The application of the company was,
however, returned by RBI vide its letter dated December 24, 2004 with
an advice to resubmit the application on the completion of SEBI''s
enquiry against the group companies. In an Appeal filed by the company
before the Appellate Authority (in the Ministry of Finance) against the
aforesaid decision of RBI, the Appellate Authority vide its Order dated
September 25, 2006, directed the company to resubmit the application
along with the latest balance sheets and other relevant details within
30 days to RBI and RBI to thereafter decide the case by obtaining
necessary response from SEBI within 3 months from the date of receipt
of the Order. The company resubmitted its application to RBI''s Regional
Office at New Delhi on 23rd October 2006 as per the aforesaid
directions of the Appellate Authority. Additional details / documents /
clarifications as required by RBI from time to time were submitted.
The company vide its letters dated 11th October, 2010 and 29th January,
2011 intimated the RBI about the disposal of pending proceeding by the
SEBI and also furnished copy of SEBI orders. The RBI vide its letter
dated 29th March , 2011 advised the company to make a fresh application
for issue of Certificate of Registration. As directed by RBI, the
company filed a fresh application on 20th June 2011.The necessary
queries/information raised/sought by RBI from time to time were filed.
The Company has now been advised by RBI to resubmit application with
updated data and in accordance with Circular No. RBI/2012-13/319
DNBS.CC.PD.NO. 312/03.10.01/ 2012-13 dated December 7,2012. As advised
by RBI,the company is in process of updating the data and resubmitting
the same.
9.1 In view of the above facts, the provisions of Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directors, 2007) are yet to be applicable to the
company. However, as a matter of prudent and proper practice,
disclosure of details as required by Para 13 of aforesaid directions is
being given. Similarly the transfer of profit to Reserve Fund as
required by Reserve Bank of India (Amendment) Act, 1997 is also being
made.
10 Schedule as required in terms of Paragraph 13 of Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions,2007
Mar 31, 2012
(*) Created by way of transfer of specified percentage of profits as
per section 45IC of Reserve Bank of India (Amendment)
Act,1997.Appropriation from Reserves shall be for the purposes as may
be specified by Reserve Bank of India.
1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED
FOR)
(a) Guarantees given on behalf of Subsidiary Company HB Securities
Limited Rs. 15,00,00,000/- (Previous Year Rs. 15,00,00,000/-)
(b) Income Tax demand Rs. 36,23,154/-(Previous year Rs. 36,23,154/-)
against which the company has preferred appeal before the appropriate
authorities.
2. RELATED PARTY TRANSACTIONS
2.1 List of related parties with whom transactions have taken place
and relationship:
a) Subsidiaries.
1. HB Securities Limited
2. HB Corporate Services Limited
b) Key Managerial Personnel
1 Shri Anil Goyal ,Managing Director
c) Person having control/significant influence /major shareholders
1. Shri H.C. Bhasin (Expired on 07.12.2010)
2. Shri Lalit Bhasin
d) Enterprises over which control/significant influence exist of the
relatives of persons mentioned in(c ) above :-
1 RRB Master Securities Delhi Ltd.
e) Companies under direct or indirect common control/significant
influence:
1. HB Stockholdings Ltd.
2. HB Estate Developers Ltd.
3. RRB Masterholdings Ltd.
4. RRB Securities Ltd.
f) Associates
1. Merwanjee Securities Ltd.
2.2 Disclosure in respect of outstanding closing balance of related
party transactions.
i) Trade payable includes Rs. 1,04,58,552/- (Previous year Nil) to RRB
Master Securities (Delhi) Ltd.
ii) Security Deposit given includes Rs. 3,45,00,000/- (Previous year Rs.
3,45,00,000/
- ) to HB Estate Developers Ltd.
iii) Loan and advances includes loan of Rs. 9,00,00,000/- (Previous year
Rs. 9,00,00,000/-) to HB Estate Developers Ltd.; Rs. Nil (Previous year Rs.
9,00,00,000/ - ) to HB Stockholdings Ltd. and advances against Share
Application Money of Rs. 4,95,00,000/- (Previous year Nil) to HB
Securities Ltd.; Rs. 2,00,00,000/- (Previous year Nil) to HB Corporate
Services Ltd. and Rs. 1,00,00,000/- (Previous year Rs. 1,00,00,000/-) to
Merwanjee Securities Ltd.
iv) Expenses recoverable includes Rs. 60,350/- (Previous year Rs. 36,135/-)
from HB Corporate Services Ltd.
v) Interest receivable includes Rs. 24,23,343/- (Previous year Rs.
23,96,712/-) from HB Estate Developers Ltd. and Rs. Nil (Previous year Rs.
25,96,439/- from HB Stockholdings Ltd.
vi) Guarantee given in respect of HB Securities Ltd. Rs. 15,00,00,000/-
(Previous year Rs. 15,00,00,000/- )
3 SEGMENT REPORTING
In the opinion of Management there are no separate reportable segments
as per Accounting Standard Segment reporting (AS-17).
4 DISCLOSURE PURSUANT TO ACCOUNTING STANDARD AS-19 FOR LEASES:-
Operating Lease
a) Particulars of the minimum lease payments under Operating Lease:-
Not Later than One year Rs. 9,49,944/- (Previous Year Rs. 9,49,944/-)
Later than one year but not Rs. NIL (Previous Year Rs. NIL)
Later than five years
Later than five years Rs. NIL (Previous Year Rs. NIL)
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March 2012 is Rs.9,49,944/- (Previous
Year Rs. 9,49,944/-).
c) General description of the lease arrangement.
- The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing of
the lessor.
- The lessee shall use the premises for commercial purposes only.
5 Due to Micro,Small and Medium Enterprises
To the extent information available with the company,it has no dues to
the Micro,Small and medium enterprises as at 31st March,2012 and 31st
March,2011.
6 The company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934 so as to carry on the business of
Non-Banking Financial Institution. The application of the company was,
however, returned by RBI vide its letter dated December 24, 2004 with
an advice to resubmit the application on the completion of SEBI's
enquiry against the group companies. In an Appeal filed by the company
before the Appellate Authority (in the Ministry of Finance) against the
aforesaid decision of RBI, the Appellate Authority vide its Order dated
September 25, 2006, directed the company to resubmit the application
along with the latest balance sheets and other relevant details within
30 days to RBI and RBI to thereafter decide the case by obtaining
necessary response from SEBI within 3 months from the date of receipt
of the Order. The company resubmitted its application to RBI's
Regional Office at New Delhi on 23rd October 2006 as per the aforesaid
directions of the Appellate Authority. Additional details / documents /
clarifications as required by RBI from time to time were submitted. The
company vide its letters dated 11th October, 2010 and 29th January,
2011 intimated the RBI about the disposal of pending proceeding by the
SEBI and also furnished copy of SEBI orders. The RBI vide its letter
dated 29th March , 2011 advised the company to make a fresh application
for issue of Certificate of Registration. As directed by RBI, the
company filed a fresh application on 20th June 2011. The necessary
queries/information raised/sought by RBI were filed by the company. The
RBI has advised that the company should pass a specific Board
Resolution to the effect that it shall not conduct the business of a
non-banking financial institution till the grant of Certificate of
Registration from Reserve Bank of India. The RBI vide its letter dated
March 20, 2012 has returned the company's application with the advice
to resubmit the application afresh at a later date based on the outcome
of the board meeting. The management is in the process of taking
necessary steps including seeking legal advice in the matter to arrive
at an amicable solution.
7.1 In view of the above facts, the provisions of Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directors, 2007) are yet to be applicable to the
company. However, as a matter of prudent and proper practice,
disclosure of details as required by Para 13 of aforesaid directions is
being given. Similarly the transfer of profit to Reserve Fund as
required by Reserve Bank of India (Amendment) Act, 1997 is also being
made.
8 The Board of directors in their meeting held on 1st Febuary, 2012
has increased the remuneration of managing director w.e.f 20th Feruary,
2012 The increase in remuneration is subject to approval of members in
annual general meeting.
9 Schedule as required in terms of Paragraph 13 of Non-Banking
Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007
* Break up Value in the case of unquoted companies has been taken on
the basis of last available Balance Sheet. Where the balance sheet is
not available, the break up value/fair value/NAV has been taken at
cost.
* The company has made certain investments in equity shares of the
companies which are in the real estate sector. The same are reflected
in the Balance Sheet. However, since these investments are not Mortgage
backed securities / other securitized exposures, the same are not
mentioned here.
Mar 31, 2011
1. Debtors and Advances Includes:
a) Due from Subsidiary Company HB Corporate Services Ltd. Rs.36,135/-
(Previous year Rs. 12,525/-) Maximum Balance outstanding at any time
during the year Rs. 36,135/- (Previous year Rs. 20,663/-).
b) Due from Subsidiary Company HB Securities Ltd. Rs. Nil (Previous
year Rs. Nil) Maximum Balance outstanding at any time during the year
Rs. 1,50,00,000/- (Previous year Rs. 2,00,00,000/-)
2. a) Contingent liability in respect of Guarantee issued on behalf of
subsidiary company HB Securities Ltd. Rs. 15 Crores (previous year Rs.
15 Crores)
b) Contingent liability in respect of Income Tax demand Rs.
36, 23,154/- (Previous year Rs. 36, 23,154/-) against which the company
has preferred appeal before the appropriate authorities and has also
filed rectification application before the Assessing Officer.
3. In the opinion of management, current assets, loans and advances
are approximately of the value stated, if realised, in the ordinary
course of business.
4. In the opinion of management, no provision is required to be made
for diminution amounting to Rs. 9, 48, 38,174/- (Previous year Rs. 5,
06, 85,601/-) in the value of some of the long-term investments, as the
same is considered to be temporary.
5. The company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934 so as to commence and carry on the
business of Non-Banking Financial Institution. The application of the
company was, however, returned by RBI vide its letter dated December
24, 2004 with an advice to resubmit the application on the completion
of SEBI's enquiry against the group companies.
In an Appeal filed by the company before the Appellate Authority (in
the Ministry of Finance) against the aforesaid decision of RBI, the
Appellate Authority vide its Order dated September 25, 2006, directed
the company to resubmit the application along with the latest balance
sheets and other relevant details within 30 days to RBI and RBI to
thereafter decide the case by obtaining necessary response from SEBI
within 3 months from the date of receipt of the Order. The company
resubmitted its application to RBI's Regional Office at New Delhi on
23rd October 2006 as per the aforesaid directions of the Appellate
Authority. Additional details / documents / clarifications as required
by RBI from time to time were submitted. The company vide its letters
dated 11th October, 2010 and 29th January, 2011 intimated the RBI about
the disposal of pending proceeding by the SEBI and also furnished copy
of SEBI orders. The RBI has now vide its letter dated 29th March , 2011
advised the company to make a fresh application for issue of
Certificate of Registration for which the company is taking necessary
steps. The management is confident of receiving the Certificate of
Registration.
6. In the opinion of the management, there are no separate reportable
segments as per Accounting Standard on segment reporting (AS-17).
7. Disclosure of related party transaction in accordance with
Accounting Standard (AS-18) 'Related Party Disclosures' Ã As per
Annexure Ã
8. Disclosure pursuant to Accounting Standards AS-19 for Leases: -
A) Operating Lease
a) Particulars of the minimum lease payments under Operating Lease :-
I. Not Later than One year. Rs.9,49,944/- Rs. 9,49,944/-)
II. Later than one year and
not later than five year Nil ( Rs. Nil )
III. Later than five years - ( - )
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March, 2011 is Rs. 9,49,944/- Rs.
9,49,944/-)
c) General description of the lease arrangement.
- The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing
of the lessor.
- The lessee shall use the premises for commercial purposes only.
- The lease can be terminated by the lessee by serving one month
notice to the lessor.
9. In view of facts explained in Note No.6 above, the provisions of
Non-Banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directors, 2007) are yet to be
applicable to the company. However, as the company has applied (and is
resubmitting the application) to Reserve Bank of India for registration
as NBFC, as a matter of prudent and proper practice, disclosure of
details as required by Para 13 of aforesaid directions is annexed.
Similarly the transfer of profit to Reserve Fund as required by Reserve
Bank of India (Amendment) Act, 1997 is also being made.
10. Gain on sale of Long Term Investments ( Net ) includes Rs.
2,38,77,146/- (Previous year Rs. 1,61,51,965/-) on Non Trade
Investments and Rs. 60,49,355/- ( Previous year Rs. 6,36,34,460/-) on
Trade Investments.
11. a) To the extent information available with the company, Sundry
Creditors include Nil, (Previous year Nil) due to Small Scale
Industrial Undertaking.
b) The company has not received any information from suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006. To the extent information available with the
company, the company does not owe any sum including interest required
to be disclosed under the said Act.
12. Information pursuant to Part IV of Schedule VI of Companies Act,
1956 is annexed.
13. Previous year figures have been regrouped / rearranged wherever
considered necessary.
14. Schedule 1 to 12 from an integral part of the accounts.
ANNEXURE REFERRED TO IN NOTE NO. 9 OF SCHEDULE 12 TO THE ACCOUNTS FOR
THE YEAR ENDED 31.03.2011.
RELATED PARTY DISCLOSURES
(AS IDENTIFIED BY MANAGEMENT AND RELIED UPON BY AUDITORS ) As per
Accounting Standard (AS-18) on ÃRelated Party DisclosuresÃ, the
disclosure of transactions with the related party as defined in the
Accounting Standard are given below :-
1. List of related parties with whom transactions have taken
place and relationship :-
a) Subsidiaries :-
i) HB Securities Ltd. ii) HB Corporate Services Ltd.
b) Key Managerial Personnel
i) Mr. Anil Goyal, Managing Director
c Person having control/significant influence/major shareholders :-
i) Sh.H.C. Bhasin ( expired on 07.12.2010 ) ii) Sh. Lalit Bhasin
d Enterprises over which significant influence/control exist of the
relatives of the persons mentioned in (c) above :-
i) RRB Master Securities Delhi Ltd.
e Companies under common control/significant influence :-
i) HB Stockholdings Ltd. iii) RRB Securities Ltd.
ii) HB Estate Developers Ltd. iv) RRB Master Holdings Ltd.
f. Enterprises over which direct/indirect significant influence
exists.
i) Merwanjee Securities Ltd.
Mar 31, 2010
1. Debtors and Advances Includes:
a) Due from Subsidiary Company HB Corporate Services Ltd. Rs.12,525/-
(Previous year Rs. Nil ) Maximum Balance outstanding at any time during
the year Rs. 20,663/- (Previous year Rs.8,138/-).
b) Due from Subsidiary Company HB Securities Ltd. Rs.Nil (Previous year
Rs.Nil) Maximum Balance outstanding at any time during the year
Rs.2,00,00,000/- (Previous year Rs. 9,50,00,000/-)
2. a) Contingent liability in respect of Guarantee issued on behalf of
subsidiary company HB Securities Ltd. Rs.8 Crores (previous year Rs. 8
Crores) b) Contingent liability in respect of Income Tax demand
Rs.36,23,154/- (Previous year Rs. 20,77,254/-) against which the
company has preferred appeal before the appropriate authorities and has
also filed rectification application before the Assessing Officer.
There are apparent calculation mistakes in the working of Assessing
Officer and once the same is rectified, there will be no demand
outstanding.
3. In the opinion of management, current assets, loans and advances
are approximately of the value stated, if realised, in the ordinary
course of business.
4. In the opinion of management, no provision is required to be made
for diminution amounting to Rs.5,06,85,601/- (Previous year
Rs.19,88,63,130/-) in the value of some of the long-term investments,
as the same is considered to be temporary.
5. The company made an application for issue of Certificate of
Registration with Reserve Bank of India (RBI) under Section 45IA of the
Reserve Bank of India Act, 1934 so as to commence and carry on the
business of Non-Banking Financial Institution. The application
6. In view of facts explained in Note No.6 above, the provisions of
Non-Banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directors, 2007) are yet to be
applicable to the company. However, as the company has applied to
Reserve Bank of India for registration as NBFC, as a matter of prudent
and proper practice, disclosure of details as required by Para 13 of
aforesaid directions is annexed. Similarly the transfer of profit to
Reserve Fund as required by Reserve Bank of India (Amendment) Act,1997
is also being made. of the company was, however, returned by RBI vide
its letter dated December 24, 2004 with an advice to resubmit the
application on the completion of SEBIÃs enquiry against the group
companies.
In an Appeal filed by the company before the Appellate Authority (in
the Ministry of Finance) against the aforesaid decision of RBI, the
Appellate Authority vide its Order dated September 25, 2006, directed
the company to resubmit the application along with the latest balance
sheets and other relevant details within 30 days to RBI and RBI to
thereafter decide the case by obtaining necessary response from SEBI
within 3 months from the date of receipt of the Order. The company has
resubmitted its application to RBIÃs Regional Office at New Delhi on
23rd October 2006 as per the aforesaid directions of the Appellate
Authority. Additional details / documents / clarifications as required
by RBI from time to time have been submitted. The decision of RBI is
awaited. The management is confident of receiving the Certificate of
Registration.
7. In the opinion of the management, there are no separate reportable
segments as per Accounting Standard on segment reporting (AS-17).
8 Disclosure of related party transaction in accordance with
Accounting Standard (AS-18) ÃRelated Party Disclosuresà à As per
Annexure Ã
9. Disclosure pursuant to Accounting Standards AS-19 for Leases: - A)
Operating Lease
a) Particulars of the minimum lease payments under Operating Lease :-
I. Not Later than One year. Rs.9,49,944/- (Rs. 9,49,944/-)
II. Later than one year and not
later than five year Nil (Rs. 9,49,944/-)
III. Later than five years à (Ã)
b) Minimum lease payments recognised in the statement of profit & loss
account during the year ended 31st March, 2010 is Rs.9,49,944/- (Rs.
14,22,405/-)
c) General description of the lease arrangement.
à The Lessee shall not sublet or otherwise part with possession of a
part or whole of the premise without the previous consent in writing of
the lessor.
à The lessee shall use the premises for commercial purposes only.
à The lease can be terminated by the lessee by serving one month notice
to the lessor.
10. Gain on sale of Long Term Investments (Net) includes Rs.
1,61,51,965/- (Previous year Rs. Nil ) on Non Trade Investments and Rs.
6,36,34,460/- (Previous year Rs. 6,70,99,024/-) on Trade Investments.
11. Disclosure of Loans/Advances and Investments in its own shares by
the listed companies, their subsidiaries, associates etc. (as certified
by the management)
12. a) To the extent information available with the company, Sundry
Creditor include Nil, (Previous year Nil) due to Small Scale Industrial
Undertaking. b) The company has not received any information from
suppliers regarding their status under the Micro, Small and Medium
Enterprises Development Act, 2006. To the extent information available
with the company, the company does not owe any sum including interest
required to be disclosed under the said Act.
13. Information pursuant to Part IV of Schedule VI of Companies Act,
1956 is annexed.
14. Previous year figures have been regrouped / rearranged wherever
considered necessary.
15. Schedule 1 to 12 from an integral part of the accounts.